My feeling on it is if you own the property, do what you want but there are complaints about the smell, there are multiple tents set up + the illegal component of making the wax too.   

@Jan Halasz, "Like kind" is defined by the intent in use of the real estate. 

While these can sink a score so can foreclosures, short sales, medical debt and a three year old bankruptcy, which in my opinion, don't represent the same risk.Credit score is also only one of three critical components for verifying an applicant's tenancy.

So it seems that the missing components, which lead to the conflict of information, was the income level and RE Professional status. 

Id suggest instead of molding yourself to what others want, define what your ideal client is then seek out those clients.

@Brook Young Your divorce decree will be the overriding document that defines the % split. 

Define a criteria you are looking to target in a property..

This makes it very difficult to qualify for an exception as it would be challenging/impossible to rent out as a "long term rental" - which I can't quite tell what is defined as.Any thoughts on strategies or ideas on how to deal with this, aside from simply selling and getting out?

It sounds like you've already taken the proper first steps, which are to learn as much as you can and then to define your investing strategy.Your dollar will certainly go further in the Phoenix metro area than it will in Orange County, and there are numerous 2-4 unit multi-family properties in Phoenix, Mesa, and other suburbs that are within your budget. 

@Jake WalrothWhen I define West vs.